​Complacency, not Complexity, the Biggest Challenge as 66% Adults in OECD Countries Lack Basic Financial Literacy

OXFORD, United Kingdom, 28 October 2025 — EBC Financial Group (EBC) and the University of Oxford's Department of Economics announce the latest episode of the acclaimed "What Economists Really Do" (WERD) webinar series. The free online panel discussion, "Think Like an Economist: Financial Literacy and Economic Understanding in an Age of Complexity," takes place Tuesday, 11 November 2025, at 12:00 PM GMT.

This third collaboration between EBC and Oxford Economics builds on previous successful episodes exploring tax evasion and climate economics. The panel features Professor Michael McMahon, Professor of Economics at the University of Oxford, and David Barrett, CEO of EBC Financial Group (UK) Ltd. The webinar will be moderated by Professor Banu Demir Pakel, Associate Head of External Engagement at Oxford's Department of Economics.

Why Economic Literacy Matters Now

In today's complex economic landscape, understanding financial principles is critical for informed decision-making. As OECD's report found, 66% of adults in member countries lack basic financial literacy. "Financial literacy" means understanding how money works, having the skills to handle it, and being able to manage and plan one's finances effectively. Yet, even in developed economies like the UK, where 39% of adults do not feel confident managing money according to the London Foundation for Banking & Finance (LFBF), economic knowledge remains elusive even among highly educated individuals. This timely panel addresses why households and experts think differently about economic systems, examines what teaching interventions actually work, and explores how central banks and policymakers can communicate more effectively.

The discussion will introduce the "Three Es" framework—Explanation, Engagement, and Education—offering practical pathways to stronger economic understanding. By combining Professor McMahon's cutting-edge research in behavioral economics and central bank communication with David Barrett's real-world insights from serving clients across global markets, the panel bridges academic rigor and industry practice.

"The biggest challenge to financial literacy today is not complexity. Rather, it is complacency. People assume AI and algorithms have thinking covered," said David Barrett. "Markets right now feel bulletproof. Despite the random, out-of-the-blue shocks we've seen this year, they've learnt to look through the noise. But most participants are confusing access to data with actual comprehension. Rules-based trading removes personal bias from execution, but it doesn't eliminate the need for economic understanding. You can have AI generate a hundred trade signals, but if you don't understand the forces behind tariff impacts or central bank pivots, you're just following patterns you don't comprehend. That's not literacy; that's dependency. Our partnership with Oxford addresses this: bringing the foundational economic thinking that transforms information into genuine understanding."

Professor Michael McMahon noted, "One of the most striking findings in our research is how even highly educated individuals struggle with basic economic concepts that affect their daily financial decisions. This isn't about intelligence. Rather, it is about mental models. This panel will explore practical ways we can bridge that gap, from how central banks can communicate more clearly to how informal teaching interventions, such as this webinar, can significantly improve economic understanding and forecasting ability."

Professor Banu Demir Pakel added, "Professor McMahon's research addresses one of the most pressing challenges facing policymakers and educators today. Having David Barrett return as a panelist adds tremendous value—his previous participation demonstrated how invaluable industry insights are to academic discussion. This dialogue will provide actionable insights to help people think more like economists and make better decisions in their financial lives, whether they're active traders, business leaders, students, or simply trying to understand the economic forces that drive our world."

About the Panelists

David Barrett is the CEO of EBC Financial Group (UK) Ltd, bringing nearly 40 years of experience in foreign exchange, fixed income, commodities, and CFDs. His career spans leadership roles at AIG, NatWest, Nomura International, and Credit Lyonnais, where he advised on institutional trading, market risk, and financial operations. A widely respected voice in global finance, David's insights on geopolitical risks, monetary policy, and market volatility have been featured in Reuters, Forbes, Financial News, Associated Press, Yahoo! Finance, and numerous international media outlets. He is a returning WERD panelist, having previously discussed "The Economics of Tax Evasion," and was invited to speak at Oxford University on macroeconomics and climate resilience—demonstrating his commitment to bridging practical market expertise with academic discourse on critical economic issues.

Professor Michael McMahon is Professor of Economics at the University of Oxford, Senior Research Fellow at St Hugh's College, and Director of the Research Policy Network on Central Bank Communication. He previously worked at Warwick University and the Bank of England, and serves on the Irish Fiscal Advisory Council. His research on macroeconomics, monetary policy, and central bank communication has been published in top journals including the Quarterly Journal of Economics and Review of Economic Studies.

This webinar is designed for students, finance professionals, policymakers, educators, traders, investors, and anyone seeking to understand economic thinking. The webinar includes interactive Q&A with both panelists.

Registration is free and open now at https://www.ebc.com/oxford2025. Secure your seat today.

Disclaimer: This material is for information only and does not constitute a recommendation or advice from EBC Financial Group and all its entities ("EBC"). Trading Forex and Contracts for Difference (CFDs) on margin carries a high level of risk and may not be suitable for all investors. Losses can exceed your deposits. Before trading, you should carefully consider your trading objectives, level of experience, and risk appetite, and consult an independent financial advisor if necessary. Statistics or past investment performance are not a guarantee of future performance. EBC is not liable for any damages arising from reliance on this information.